The Extractives Dependence Index (EDI)

Published Date: 
January, 2017
United Nations Development Programme (UNDP)

by Degol Hailu and Chinpihoi Kipgen

The Extractives Dependence Index (EDI) is a measure to monitor a country’s dependence on the extraction of oil, gas and mineral resources.The EDI measure the share of export earnings from extractives; their share of revenue in total revenue; and their value added in GDP.Persistent dependence on the extractive sector subjects an economy to volatile economic growth and affects its sustainability.Measuring a country’s dependence on extractives allows the crafting of better policies for diversification strategies.